The Indian government is in the market to sell its stake of Air India – and on Monday set a March 17 deadline for initial expressions of interest.
Indian conglomerate Hinduja Group and US-based fund Interups are already reported to be submitting theirs.
It’s not the first attempt at a sale: in 2018 the government failed to divest 76 per cent of the airline, and with it over five billion dollars of debt.
Air India workers protested ….
And potential bidders opted out because of stringent conditions attached – such as retaining all employees.
This time, the government has indicated, it’s open to revising some provisions.
Though bidders must assume liabilities, including debt at just under 3.3 billion dollars.
And substantial ownership and control must remain with an Indian entity.
The sale might face opposition from within prime minister Narendra Modi’s ruling BJP Party – one lawmaker describes the deal as quote ‘anti-national’.
But if successful, the buyer gets over 7,000 landing slots in India and overseas …
Together with the carrier’s low-cost arm and a stake in its cargo and ground-handling operations.
As for staff, Air India currently has around 13,000 permanent and contract personnel on its books …
EmbraerX, Embraer’s disruptive business subsidiary, announces its expansion into the commercial air cargo market, via a collaboration agreement with Elroy Air, at CES 2020. This collaboration will allow the companies to accelerate the unmanned air cargo market worldwide, leveraging Embraer’s 50 years of industry experience with Elroy Air’s bold new developments in autonomous aircraft systems.
“In order to stay the course of creating solutions that benefit humanity at large, we believe the cargo market is prime for an autonomous aircraft,” said Antonio Campello, President & CEO, EmbraerX. “Booming eCommerce is forcing the cargo market to grow and seek new solutions, creating a distinct need for more flexibility. Our holistic approach to accelerating this market will include working with Elroy Air and its Chaparral system, capable of delivering cargo (250-500 lbs) over distances up to 300 miles, as well as our work in associated services and air traffic management solutions.”
“Elroy Air aims to open a new chapter for the logistics market with point-to-point autonomous aerial cargo systems” said Dave Merrill, CEO of Elroy Air. “Elroy Air’s Vertical Takeoff and Landing (VTOL) cargo delivery aircraft, the Chaparral, will operate without airports or charging stations, and is optimized for freight with automated cargo loading and unloading. Our collaboration with EmbraerX will accelerate our path to deployment in commercial freight markets.”
This collaboration is part of EmbraerX’s multi-project approach to further develop the air mobility ecosystem and create the conditions for people and goods to move from A to B in a seamless and affordable way. Beyond cargo, EmbraerX is engaged in several projects, including the development of an Urban Air Mobility focused eVTOL, a tailored Urban Air Traffic Management (UATM) system and a fleet-agnostic business platform, designated Beacon, to streamline services.
The Boeing logo is displayed on a screen, at the NYSE in New York
WASHINGTON (Reuters) – Boeing Co <BA> has decided not to compete as a prime contractor to replace the Pentagon’s aging U.S.-based Minuteman III missile system, paving the way for Northrop Grumman Corp <NOC> to win a contract worth tens of billions of dollars.
Friday marked the deadline to submit proposals to continue work on the replacement of the nearly half-century-old intercontinental ballistic missile (ICBM) system as the military embarks on a costly modernization of its aging atomic weapons.
Boeing said in a statement that it was disappointed it was unable to submit a bid. Northrop said it had submitted its proposal. No other bidders were expected.
Boeing’s decision not to enter a bid as a prime contractor had been foreshadowed this summer in a letter from the chief executive of Boeing Defense Space and Security, Leanne Caret, to Air Force leadership, saying Northrop’s 2018 purchase of solid rocket motor maker Orbital ATK might make it difficult for Boeing to compete on cost.
Orbital is the top producer of the solid fuel rocket motors generally used in Minuteman III and similar missiles.
Upgrading the U.S. nuclear force was expected to cost more than $350 billion over the next decade as the United States works to replace its bombs, nuclear bombers, missiles and submarines. Some analysts estimated the cost of modernization at $1 trillion over 30 years.
The Pentagon’s Cost Assessment and Program Evaluation office has said the total cost to replace Minuteman III could top U.S. $85 billion.
MONTREAL/WINNIPEG (Reuters) – Canada’s longest railroad strike in a decade ended on Tuesday as Canadian National Railway Co reached a tentative agreement with workers, but shippers warned it could take weeks before service bounces back to normal.
Industry groups celebrated the end of the eight-day strike at the country’s biggest railroad, which had cost them sales and raised their expenses. News of the deal, which must still be ratified by union members, sent CN shares up by as much as 2%.
Thousands of unionized workers began heading back to their jobs, CN said, with operations expected to be in full swing on Wednesday. Union members should vote on the deal within eight weeks.
CN has rescinded 70 temporary layoff notices at an auto shipment terminal in Nova Scotia following the deal, another union said.
Canada relies on CN and Canadian Pacific Railway to move crops, oil, potash, coal and manufactured goods to ports and the United States.
Details of the agreement were not available but some 3,200 striking conductors and yard workers had been demanding improved working conditions, including rest breaks.
Prime Minister Justin Trudeau acknowledged CN and union officials in a tweet on Tuesday and thanked workers, industry and all Canadians for their patience.
Trudeau’s minority government had faced pressure from industry and farmers to end the strike and force workers back to their jobs.
Transport Minister Marc Garneau told reporters on Tuesday that if Ottawa had intervened with legislation, “we would not have had a solution today.”
Teamsters Canada President Francois Laporte noted the federal government “remained calm and focused.” CEO of Montreal-based CN J.J. Ruest thanked customers for their patience.
About half of Canada’s exports move by rail, according to industry data, and the strike would likely cost the Canadian economy less than C$1 billion ($750 million) and cut fourth-quarter growth by about 0.1 percentage point, Brian DePratto, a senior economist at TD, said.
PROPANE SHORTAGE TO PERSIST
The Canadian Propane Association warned severe shortages of the fuel in several eastern Canadian provinces could last weeks. “We need to get the inventory back up,” said association President Nathalie St-Pierre, noting the “crisis” was not over.
Garneau said CN will work quickly to clear the backlog, but added the process is complex and would take time.
Bob Masterson, chief executive of the Chemistry Industry Association of Canada, said some plants had slowed production during the strike.
Based on past rail disruptions, he said CN is likely to move critical commodities first, like propane for farms and homes and chlorine for drinking water, leaving other shippers to face delays.
PAIN FOR MINERS, FARMERS
Brendan Marshall, a vice president with the Mining Association of Canada, said miners faced hefty costs due to lost sales and plant disruptions. He said restoring normal operations could take a week for every day of disrupted service.
“Now we can hope that things can get back to normal in quick fashion. It’s cost a lot of money to farmers already,” said Markus Haerle, chairman of the Grain Farmers of Ontario. Wet conditions have stalled the harvest across much of Canada, including much of Haerle’s corn crop near St. Isidore, Ontario. Those crops must be dried before they can be sold, but the rail strike held up deliveries of propane, forcing farmers to use costlier alternatives.
(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg. Additional reporting by Kelsey Johnson in Ottawa, writing by Steve Scherer, editing by Louise Heavens, Steve Orlofsky and David Gregorio)
FILE PHOTO: Railcars stand idle at the CN railyards in Edmonton
MONTREAL/WINNIPEG, Nov 19 (Reuters) – Thousands of workers at Canada’s largest railway went on strike for the first time in a decade on Tuesday, disrupting the shipping of commodities and sparking calls for Prime Minister Justin Trudeau’s Liberal government to intervene.
About 3,000 unionized workers of Canadian National Railway, including conductors and yardmen, hit picket lines after both sides failed to resolve contract issues at a time of softening demand for freight service. They continued talks on Tuesday in Montreal amid union concerns over fatigue, safety and ensuring that workers’ breaks are not reduced.
Canada, one of the world’s biggest exporters of farm products, relies on CN and Canadian Pacific Railway to move canola, wheat and other commodities over vast distances from western farms to ports. Crude oil shippers and the mining industry also depend on the railways.
The strike comes at an awkward time for Trudeau’s government, which relies on smaller parties to pass legislation and faces criticism from western provinces about its failures to get new oil pipelines built. Trudeau has said he is not reconvening Parliament until Dec. 5, and the government cannot start the process to force workers back on the job until then.
Andrew Scheer, leader of the Conservatives, the second-largest party in Parliament, and Alberta Energy Minister Sonya Savage each separately urged Trudeau on Twitter to recall Parliament immediately.
The Canadian mining industry, which accounts for more than half of annual rail freight revenues, depends on CN to transport supplies to company sites and products from their operations.
“This strike will result in a severe reduction or elimination of railway capacity and will trigger the closure of mines with concurrent layoffs of thousands of employees beginning in a matter of days,” said Pierre Gratton, president and CEO of the Mining Association of Canada.
“SCREECHING HALT”
Industry groups ranging from the Canadian Manufacturers and Exporters to propane and fertilizer groups said Ottawa needed to step in to limit damage to the economy.
The BC Council of Forest Industries, which represents the sector in British Columbia, expressed concerns about the disruptions caused by the strike for rail transport.
“Ninety percent of the forest products we produce are sent to export markets in North America and around the world,” Susan Yurkovich, the body’s president, said.
“A disruption of this critical transportation network will adversely impact BC forest companies at a time when we are already facing significant challenges and increasing competition from around the globe”, Yurkovich added.
CN and CP also collectively handle nearly all grain movement in Western Canada, the country’s crop belt, split roughly evenly between the railways.
The stoppage “has an impact before it even begins because companies pull back sales in anticipation of a strike,” said Wade Sobkowich, executive director of the Western Grain Elevator Association, whose members include Cargill Ltd, Richardson International and Viterra Inc.
CN’s shipments of hazardous goods such as crude are likely to come to a “screeching halt” even if the railroad’s management steps in to limit freight volumes, said Kent McDougall, chief commercial officer at Torq Energy, which loads crude oil in Western Canada onto trains operated by both CN and CP.
A strike may temporarily constrain CN’s volumes, but will not likely have a meaningful long-term impact on the company’s earnings, Credit Suisse analysts said in a research note on Monday, adding that Ottawa has historically been quick to intervene.
Shares of Montreal-based CN were down 1%, while the benchmark Canadian share index was up slightly.
Canadian Labour Minister Patty Hajdu and Transport Minister Marc Garneau said they are monitoring the CN strike situation closely after meeting with the two sides on Monday.
CN said in a statement that it was “disappointed” at the strike action. CN’s service in the United States will continue operating despite the strike.
The company said on Friday it would cut management and union jobs as it grapples with an economic slowdown.
Rail workers with the Teamsters held their last strike in 2009, when locomotive engineers walked off the job for five days, the union said.
(Reporting by Allison Lampert in Montreal and Rod Nickel in Winnipeg Additional reporting by Kelsey Johnson, David Ljunggren and Steve Scherer in Ottawa and Kanishka Singh in Bengaluru Editing by Chizu Nomiyama, Sandra Maler and Leslie Adler)
OTTAWA (Reuters) – Airbus SE <EADSY> on Friday pulled out of a multibillion-dollar competition to supply Canada with 88 new fighter jets, a decision that boosts the chances of rival Lockheed Martin Corp <LMT>.
The defense arm of Airbus, which indicated last month it might withdraw, cited onerous security requirements and a late decision by Ottawa to loosen the rules for how much bidders would have to invest in Canada.
Airbus and other contenders had already complained the government appeared to be tilting the race in favor of Lockheed Martin’s F-35 plane, which the Royal Canadian Air Force wants. Canada is part of the consortium that developed the plane.
Canada launched the long-delayed competition last month and said it was confident no favoritism had been shown. Ottawa says the contract is worth between C$15 billion ($11.30 billion) and C$19 billion.
Canada’s official opposition Conservative Party, which is seeking to defeat Liberal Prime Minister Justin Trudeau in an October election, accused the government of gross mismanagement.
Reuters revealed in July that Airbus and Boeing Co <BA.N> had written to Ottawa to say they might pull out.
The firms are unhappy that in late May, the government dropped a demand that bidders must guarantee to give Canadian businesses 100% of the value of the deal in economic benefits.
Such legally watertight commitments, which Boeing, Airbus and Sweden’s Saab AB <SAABb.ST> had already agreed to, contradict rules of the F-35 consortium. Ottawa’s move allowed Lockheed Martin to stay in the competition.
“One of the strongest points of our bid was the fact we were willing to make binding commitments,” said an Airbus source, who requested anonymity given the sensitivity of the situation.
“Once this was loosened up to a point where these commitments were no longer valued in the same way”, the firm decided “that’s just too much”, added the source, who also cited security challenges.
European jets must show they can meet stringent standards required by the United States, which with Canada operates the North American Aerospace Defense Command.
“NORAD security requirements continue to place too significant of a cost on platforms whose manufacture and repair chains sit outside the United States (and) Canada,” Airbus said in a statement.
Canadian Procurement Minister Carla Qualtrough said she respected the Airbus decision, adding Ottawa was determined there should be a level playing field.
“This included adapting the economic benefits approach to ensure the highest level of participation among suppliers,” she said in emailed comments.
Canada has been trying unsuccessfully for almost a decade to purchase replacements for its aging F-18 fighters. The former Conservative administration said in 2010 it would buy 65 F-35 jets but later scrapped the decision, triggering years of delays and reviews.
Trudeau’s Liberals took power in 2015 vowing not to buy the F-35 on the grounds that it was too costly, but have since softened their line.
“Justin Trudeau has spent the past four years delaying and dithering on new fighter jets for Canada only to completely mismanage the competition process,” said Conservative defense spokesman James Bezan.
Lockheed Martin declined to comment while Boeing and Saab did not respond to requests for comment.
($1 = 1.3275 Canadian dollars)
(Reporting by David Ljunggren; Editing by David Gregorio)
AirAsia X orders 12 more A330neo and 30 A321XLR aircraft
AirAsia X, the long-haul unit of the AirAsia Group, has finalised a firm order with Airbus for an additional 12 A330-900 and 30 A321XLR aircraft. The contract was signed by Tan Sri Rafidah Aziz, Chairman, AirAsia X Berhad and Guillaume Faury, Chief Executive Officer, Airbus in Kuala Lumpur today, in the presence of Tun Dr Mahathir Mohamad, the Prime Minister of Malaysia.
Tan Sri Tony Fernandes, Chief Executive Officer, AirAsia Group, who was present at the signing, said: “This order reaffirms our selection of the A330neo as the most efficient choice for our future wide-body fleet. In addition, the A321XLR offers the longest flying range of any single-aisle aircraft and will enable us to introduce services to new destinations. Together, these aircraft are perfect partners for long-haul low-cost operations and will allow us to build further on our market leading position in this fast-growing sector.”
Tan Sri Rafidah Aziz, Chairman of AirAsia X Berhad, said: “Today’s announcement is testament to our confidence and commitment to longer haul air travel. This is the future of our long-haul operations. The A330neo’s revolutionary new features and modifications will move our long-haul service sectors up to a higher level and allow AirAsia X to look at expanding beyond the eight-hour flight radius, such as to Europe, for example.”
Guillaume Faury, Chief Executive Officer, Airbus commented: “AirAsia X has been the pioneer of the long-haul low-cost model in the Asia-Pacific region. This new order for the A330neo and A321XLR is a true endorsement of the Airbus solution to meet mid-market demand with a combination of single-aisle and wide-body products. This powerful solution will provide AirAsia X with the lowest possible operating costs to expand its network and enable even more people to fly further than ever before.”
The new contract increases the number of A330neo aircraft ordered by AirAsia X to 78, reaffirming the carrier’s status as the largest airline customer for the type. Meanwhile, the A321XLR order sees the wider AirAsia Group strengthen its position as the world’s largest airline customer for the A320 Family, having now ordered a total of 622 aircraft.
AirAsia X currently operates a fleet of 36 A330-300s on services to points within the Asia-Pacific region and the Middle East. In addition, in August, the first A330neo joined the fleet of AirAsia’s Bangkok-based long haul affiliate, AirAsia X Thailand. The aircraft is the first of two leased A330neos joining the airline’s Thai affiliate by the end of the year.
The A321XLR is the next evolutionary step from the A321LR which responds to market needs for even more range and payload, creating more value for the airlines. From 2023, it will deliver an unprecedented Xtra Long Range of up to 4,700 nm – 15% more than the A321LR and with 30% lower fuel burn per seat compared with previous generation competitor aircraft.
The A330neo is a true new generation aircraft building on the A330’s success and leveraging on A350 XWB technology. It incorporates the highly efficient new generation Rolls-Royce Trent 7000 engines, and a new higher span 3D optimised wing with new Sharklets. Together these advances bring a significant reduction in fuel consumption of 25% compared with older generation competitor aircraft of a similar size. The A330 is one of the most popular wide-body families ever, having received over 1,700 orders from more than 120 customers.
TOKYO, Aug 30 (Reuters) – Japan’s military has asked for an eighth straight annual increase in defence spending to help pay for U.S.-made interceptor missiles, stealth fighters, and other equipment it wants to counter threats from North Korea and China.
The Ministry of Defence budget proposal released Friday calls for spending to increase 1.2 percent to a record 5.32 trillion yen ($50.48 billion) in the year starting April 1. Finance ministry officials will scrutinise the request before it is approved by Prime Minister Shinzo Abe’s cabinet.
Already one of the world’s biggest military spenders despite a constitution that forbids the possession of weapons to attack other countries, Japan has increased military outlays by a tenth over the past seven years. That growth is being driven by alarm over military build ups by its neighbours.
Japan’s spending, much of it on advanced weapons from the United States, has benefited the likes of Lockheed Martin Corp and Raytheon Co, and worried local contractors such as Mitsubishi Heavy Industries who have seen their share of defence spending shrink.
U.S. President Donald Trump has thanked Japan for buying the expensive U.S. equipment, helping curtail criticism of Japan amid trade tensions between Tokyo and Washington.
For the next fiscal year, Japan’s defense officials have asked for 115.6 billion yen to buy nine Lockheed Martin F-35 stealth fighters, including for the first time six short take-off and vertical landing (STOVL) B variants that it wants to operate from aircraft carriers. That purchase will help Japan project military power by extending the range at which the country’s Self Defense Forces can operate.
The defence ministry also wants 116.3 billion yen to bolster ballistic missile defences (BMD), including money for a new generation of interceptor missiles designed by Raytheon to shoot down incoming warheads in space. It also wants funds for vertical launch systems for ships and two planned ground-based Aegis Ashore radar missile tracking stations.
($1 = 105.3900 yen)
(Reporting by Tim Kelly; Editing by Michael Perry)
LONDON (Reuters) – Jaguar Land Rover (TAMO.NS) is making a multi-million pound investment to build electric vehicles in Britain, in a major boost for the UK government and a sector hit by the slump in diesel sales and Brexit uncertainty.
Britain’s biggest car company, which built 30 percent of the UK’s 1.5 million cars last year, will make a range of electrified vehicles at its Castle Bromwich plant in central England, beginning with its luxury sedan, the XJ.
“The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” Chief Executive Ralf Speth said on Friday.
The announcement gives a boost to Britain’s automotive sector hit this year by Honda and Ford’s (F.N) plans to close factories.
Jaguar Land Rover (JLR) has highlighted the dangers of a no-deal Brexit and the need to maintain frictionless trade with the European Union, echoing warnings from the industry that just-in-time production could be hit by customs delays and additional bureaucracy.
But it has signed a deal with workers at the Castle Bromwich factory to go from a five-day to a four-day working week with the same amount of hours which should allow the plant to operate more efficiently.
Three of JLR’s four European car plants are in Britain, giving it limited capacity elsewhere on the continent.
The other, in Slovakia, only opened last year and is still being ramped up with other models allocated there.
“We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business,” JLR said.
“We are committed to the UK as our home and will fight to stay here but we need the right deal.”
Both candidates to replace Prime Minister Theresa May, Boris Johnson and Jeremy Hunt, have both said they are prepared to take Britain out of the EU on Oct. 31 without a deal, although it is not their preferred option.
Brexiteers have argued that the EU’s biggest economy Germany, which exports hundreds of thousands of cars to Britain ever year, would do its utmost to protect that trade
Friday’s announcement comes after a turbulent few months for Jaguar which announced around 4,500 job cuts earlier in January and posted a 3.66 billion pound ($4.5 billion) loss in 2018/19.
The carmaker is undergoing a turnaround designed to offer an electrified option to all of its new models from 2020 as it seeks to move away from its reliance on diesel vehicles which are being increasingly shunned by buyers.
Jaguar also called on the government to bring giga-scale battery production to the country so that Britain is not left behind in the rush to produce low and zero-emissions vehicles and technology.
Britain’s business minister Greg Clark said the government was doing all it can to meet that goal.
“We are determined to realize that ambition,” he said.
($1 = 0.7952 pounds)
Reporting by Costas Pitas; editing by Michael Holden and Jane Merriman
FILE PHOTO – A car hangs on the wall of Jaguar’s Castle Bromwich manufacturing facility in Birmingham, Britain, November 17, 2016. REUTERS/Darren Staples
OTTAWA (Reuters) – Airbus SE <AIR.PA> and Boeing Co <BA.N> may pull out of a bidding process to supply Canada with new fighter jets because they say the contest is unfairly tilted towards Lockheed Martin Corp <LMT.N>, two sources with direct knowledge of the situation said on Monday.
The three companies competing with Lockheed Martin’s F-35 jet have already complained about the way the contest is being run, and expressed concern some of the specifications clearly favour the U.S. firm, industry sources have said in recent weeks.
Next week the government is due to release the so-called request for proposals – the final list of requirements – for the 88 new planes it wants to buy. The contract is worth between C$15 billion (£9 billion) and C$19 billion and the planes are due to be delivered between 2025 and the early 2030s.
Boeing and Airbus have now formally written to Ottawa expressing concerns about the current requirements, said two sources familiar with the matter who declined to be identified given the sensitivity of the situation. The fourth bidder is Sweden’s Saab AB <SAABb.ST>.
Pat Finn, the defence ministry’s top official in charge of procurement, confirmed one of the four companies had sent a formal letter but gave no details. The final request for proposals is due out on July 17 and modifications are still being considered, he said.
“We continue to engage all four of them,” he said in a telephone interview. “We have had some comments (such as) ‘If changes are not made in such a place then we would frankly consider possibly not bidding.'”
“We are looking at those very seriously. I can’t say that we will make every change, but as far as we know we continue to have four bidders in the race.”
Airbus declined to comment. Boeing did not respond to a request for comment.
Canada has been trying unsuccessfully for almost a decade to buy replacements for its ageing F-18 fighters. In May, Ottawa changed the rules to allow Lockheed Martin to submit a bid, prompting Boeing to take the unusual step of announcing publicly it was surprised.
“Anyone who is not Lockheed Martin has expressed a very strong view,” said one of the sources. “We have been pretty clear with the government that this is not a request for proposals that lends to our participation.”
At least one firm has expressed unhappiness that the requirements emphasize the ability to carry out first strikes on targets abroad, a strength of the F-35, said the sources.
The government of Prime Minister Justin Trudeau insists the competition is not rigged. Finn said the defence ministry also had made changes to the requirements at the request of Boeing, Airbus and Saab.
Canada is part of the international consortium that developed the F-35. The former Conservative administration said in 2010 it would buy 65 of the jets but later scrapped the decision, triggering years of delays.
Trudeau came to power in 2015 vowing not to buy the F-35 on the grounds that it was too costly, but Ottawa has since softened its line.
(Reporting by David Ljunggren in Ottawa; Editing by Matthew Lewis)
FILE PHOTO: A real-size mock of F-35 fighter jet is displayed at Japan International Aerospace Exhibition in Tokyo
